Fair tax would be a bad deal for U.S.

Published: Wednesday, October 2, 2013 at 3:08 p.m.

Last Modified: Wednesday, October 2, 2013 at 3:08 p.m.

I am a retired CPA with no financial interest in any tax system. I can support every comment I make in detail.

The so-called “fair tax” is a fraud — it is Karl Marx on steroids and a Bernie Madoff financial scam.

In its own proponents’ words, fair tax proudly advertises that it increases welfare.

The prebate is advertised as merely repaying the poor for any fair tax they pay, but actually would pay them far more than any fair tax they might pay and also gives the working poor free Social Security and Medicaid.

The fair tax hits us with a 40 percent to 70 percent in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our retail-sales-sensitive economy.

In addition to that 40 percent to 70 percent tax, the fair tax contains several hidden taxes.

Fair tax’s 30 percent rate is really a more than 40 percent tax.

The 12 percent is hidden by having federal and state and local governments paying the fair tax. They must get that money from you.

The initial 30 percent rate is 1 percent to 5 percent short, and that plus any other revenue shortfall will have to be made up by raising more taxes.

The federal budget for Social Security will rise because of the fair tax because of a cost of living adjustment of almost 30 percent and new Social Security benefits.

And more fair tax (or a new income tax) will be required to fund these.

The new IRS will be far worse, far more invasive than today’s IRS. We may well have to file an annual fair tax summary.

We may well wind up with both a new income tax and the fair tax.

What we need is a flat income tax with no deductions, no exemptions, no credits and a 10 percent rate, with business income taxed to shareholders on a very simple basis (i.e., no corporate income tax).

Call your representatives in Congress and let them know that this is what you want.

<p>I am a retired CPA with no financial interest in any tax system. I can support every comment I make in detail.</p><p>The so-called “fair tax” is a fraud — it is Karl Marx on steroids and a Bernie Madoff financial scam. </p><p>In its own proponents' words, fair tax proudly advertises that it increases welfare.</p><p>The prebate is advertised as merely repaying the poor for any fair tax they pay, but actually would pay them far more than any fair tax they might pay and also gives the working poor free Social Security and Medicaid.</p><p>The fair tax hits us with a 40 percent to 70 percent in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our retail-sales-sensitive economy.</p><p>The 40 percent is the 30 percent fair tax plus the 10 percent state sales tax. The 70 percent is the rate needed at a sample 30 percent fair tax evasion rate. The fair tax incredibly assumes zero evasion and zero intentional reduction in spending.</p><p>In addition to that 40 percent to 70 percent tax, the fair tax contains several hidden taxes.</p><p>Fair tax's 30 percent rate is really a more than 40 percent tax.</p><p>The 12 percent is hidden by having federal and state and local governments paying the fair tax. They must get that money from you.</p><p>The initial 30 percent rate is 1 percent to 5 percent short, and that plus any other revenue shortfall will have to be made up by raising more taxes.</p><p>The federal budget for Social Security will rise because of the fair tax because of a cost of living adjustment of almost 30 percent and new Social Security benefits.</p><p>And more fair tax (or a new income tax) will be required to fund these.</p><p>The new IRS will be far worse, far more invasive than today's IRS. We may well have to file an annual fair tax summary.</p><p>We may well wind up with both a new income tax and the fair tax.</p><p>What we need is a flat income tax with no deductions, no exemptions, no credits and a 10 percent rate, with business income taxed to shareholders on a very simple basis (i.e., no corporate income tax).</p><p>Call your representatives in Congress and let them know that this is what you want.</p><p>Stephen C. Eldridge</p><p>Cosby, Tenn.</p>